The advances are made ‘with recourse’, so that if reimbursement is not received when due from the issuing bank, repayment of the advance can be demanded from the beneficiary. If the credit was confirmed and the terms and conditions are fully complied with, the advance or agreement to advance
is made on a ‘non-recourse’ basis.
When the Documents have been fully or partially advanced by the bank in favor of its customer but it may still be returned and/or refused by the issuing bank or the collecting bank. If the advance was granted with the option of recourse to the customer, the bank can reclaim the advanced amount and interest amount whatever is due.
If under a transfer LC an advance was made to the first and second beneficiary side, the repayment is done on a pro rata basis for both parties.
The contract can only be closed when the amount settled matches the open amount (if only part-payment is made, the contract remains open).
To reclaim the advanced amount from the Beneficiary, BPTCRF transaction is used. This transaction is Not allowed if the advance contract is without recourse.
Select it from the menu item[Financing Products -> Advance -> Main -> Repayment / Recourse].
(Users can directly start this transaction by clicking the (Launch transaction 
) available in the Panel headline without having to select the relevant menu)
When you have made your changes, click on the ( 
) Save function to save all the the data entered in the transaction to the database.
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